The US housing market is red hot, as home prices grow by record amounts. While there are reasons for concern, so far this boom is much different than the one that shook apart the financial system in 2008.

Home-buying hopefuls have ample reason to be frustrated: Prices rocketed 16.6% across the nation in May from a year earlier, the second record jump in a row, according to the S&P CoreLogic Case-Shiller index. Phoenix had the biggest leap, with prices increasing an eye-popping 26%. Gains are evident across the country, with the likes of Charlotte, Denver, and Dallas posting their biggest ever 12-month increases.

Some economists think the surge is partly related to the pandemic, which has driven a shift from urban areas to suburban homes with extra rooms and green space. A big question is whether Covid pulled forward demand for suburban housing that would have been there anyway, or if there’s a new, lasting shift in behavior, says…

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